The Effect of Intellectual Capital (IC) on Financial Performance

Abstract

The research examines effect of Intellectual Capital (IC) on financial performance (financial sector listed, on Indonesian Stock Exchange). This study used method was the explanatory. The data source used is secondary data. This study used a purposive sampling technique. Population is all financial companies listed in the Indonesian Stock, Exchange in 2014-2018. The number of sample use are 340 samples (68 company in 5 years). Multiple linear regression is the analytical method used application of SPSS 16. The result indicated that an intellectual capital variable using HCE has a negative, and significant effect Return On Asset (ROA). The intellectual capital variable using SCE has a positive and significant effect Return On Asset (ROA). Intellectual capital variable using CEE has a positive and significant effect Return On Asset (ROA).